Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I've sold most of my apple but it's getting a nice little pop today.

 

Bad timing in my opinion. I think it is going to get a higher multiple since it's starting to be more about services than hardware. I expect $300 in the next year or so.

 

I shifted most to goog and Amzn quite a while ago , not complaining

 

If quite a while ago, good move. Apple hasn't done much lately, I guess I am hyping it up because I own it. I do expect it to finally move up though. If it gets the P/E it should have, it would be $350 already.

 

FED CUTTING RATES BY 25 BP

 

Algos are having a meltdown lol

 

Question for people here. ive played around with cryptos and have had decent success turning a profit. id like to venture into more traditional means of investing like stocks. im planning on splitting $5000 50/50 between stocks and cryptos. i have the cryptos figured out and know how i will invest, what are things to look for in stocks? ive been considering into high risk/reward stocks like CNAB and ACNNF . these would be long term(5-10yr) holds

 

What exactly is going on... worst day my portfolio has ever had and dropping by the second!

 

you said it yourself, algos going nuts haha

 

The fed is a mess. I read an article from Dec. 2018 when they made that ridiculous rate hike. It said Powell was planning for 2 more in 2019. And now, here we are in 2019 cutting rates! I am so glad I am a long-term investor, these people have no idea what they're doing.

 

I still think cutting rates was a bad move. They must know something that we don't. We will be at NIRP in the next 10 years at this rate.

 

Every Powell press conference ends in a sell-off. Whether it’s a hike, cut, or neutral. I agree, shouldn’t have cut. The next recession will just be that much worse with nothing left to cut.

 

Apparently they said "this is all we are cutting" so the markets are having a fit. LOL. Oh well.

 

I just got to thinking. The fed funds rate is what it costs to borrow money (banks borrowing from banks). Basically, the lower the rate, the less you have to “pay” in interest to borrow money. How does it work for the European countries with negative rates? Do you then get paid to borrow money? That wouldn’t make sense, but how does it end up working when rates are negative?

 

I think say if you buy bonds maybe you buy them for $100 a peice but get back $99 or whatever the math works out to be. Might also apply to savings accounts. If you get a loan I'm sure the interest rate is still positive since banks make money off the diffrence in loans rates vs deposit rates. Maybe somebody here can explain it better but I was curious and googled the same thing a while back.

Also I guess people buy negative rate bonds because they are issued from governments and have a very low risk of going bankrupt.

 

Some European banks actually pay you to borrow, crazy, maybe to try to avoid deflation by promoting spending (if prices are falling, people might wait for them to fall more, causing a deflationary spiral).

https://www.bloomberg.com/amp/news/articles/2019-07-23/easy-money-extreme-some-swiss-banks-pay-their-clients-to-borrow

https://www.npr.org/2015/04/14/399641297/when-rates-turn-negative-banks-pay-customers-to-borrow

https://www.sovereignman.com/trends...ative-rate-of-interest-to-borrow-money-25233/

There are so many articles on this I’ll stop posting them, but apparently it is happening.

 

Kinda just seems like their government is trying to prop up asset prices

 

The EU economy is in shambles. Same with Japan

 

Lol what a time to be alive

 

let's see how this plays out. Might pull the trigger with that "dip" money this time around.